Part 10/14:
Furthermore, the rise in foreclosures is a clear symptom of broader economic strain. Year-over-year, foreclosure rates have increased for eight consecutive months, with current figures indicating that over 36% more homes are being foreclosed now than last year. This financial pressure is exacerbated by high automobile and housing costs, stagnant wages, and substantial credit card debt.
The Broader Economic Context: Is a Collapse Imminent?
The data presented suggests that the American auto industry is teetering on the edge of a crisis. The decline in new vehicle sales, inflated inventories, negative equity, record repossessions—these are all classic signs of an overheated market destined for a correction.